Two fraudsters who pocketed more than £400,000 by selling a non-existent cryptocurrency have been sentenced to prison. Ross Jay, 33, and Michael Freckleton, 37, were found guilty of conspiracy to defraud after cold-calling victims and offering them shares in Digi Ex, claiming profits from an up-and-coming crypto called Telecoin.
City of London Police reported £509,599 deposited to Digi Ex between 2015 and 2017, with £409,493 traced back as payments from investors. At Southwark Crown Court on Friday, Jay was given six years and three months in jail and Freckleton was sentenced to six and a half years.
Detective Inspector Lee Parish of the Fraud Operations Team at City of London Police said: “Jay and Freckleton took advantage of investors’ enthusiasm to be part of the new and potentially profitable crypto world. Instead of investing the money, they simply pocketed it for their own personal gain.”
The investigation found that Jay and Freckleton paid themselves large salaries and withdrew £145,000 in cash. DI Parish warned against investing in high-risk currencies: “Please do your research and only go with a company that is FCA registered and recognised worldwide. If you are unsure, contact an accredited financial advisor.”
